Core Insights - Katapult Holdings, Inc. reported strong performance in Q4 2024, with significant growth in gross originations and application volume, indicating a successful holiday season and positive momentum heading into 2025 [2][4][6] - The company is transitioning to a two-sided marketplace model, which has resulted in increased customer engagement and repeat business, with 61% of gross originations originating from the Katapult app marketplace [2][4][11] - For 2025, Katapult expects gross originations to grow at least 20%, driven by strategic marketing and the introduction of new merchants to its platform [6][7][11] Financial Performance - In Q4 2024, gross originations reached $75.2 million, an increase of 11.3% year-over-year, while total revenue was $63.0 million, up 9.4% [8][37] - The company achieved a net loss of $9.6 million in Q4 2024, an improvement from a net loss of $14.6 million in Q4 2023 [8][30] - For the full year 2024, total revenue was $247 million, reflecting an 11.6% increase compared to 2023 [8][37] Customer Engagement and Market Strategy - The company reported a 50% year-over-year increase in lease applications during Q4 2024, driven by both new and existing customers [4][8] - Katapult's KPay platform contributed to approximately 52% year-over-year growth in gross originations, with 41% of total gross originations transacted using KPay [4][8] - The company launched new partnerships with merchants, expanding its ecosystem to 33 merchants, and executed co-branded marketing campaigns that significantly boosted originations during the Cyber 5 period [4][8] Outlook and Market Position - Katapult is well-positioned to continue growth in 2025, targeting underserved non-prime consumers, particularly as traditional credit options may become less available [6][11] - The company anticipates maintaining strong credit quality in its portfolio through enhanced risk modeling and onboarding high-quality merchants [15] - The strategic focus on a two-sided marketplace model is expected to allow for scalable revenue growth without a proportional increase in expenses, enhancing profitability [11][15]

Group 1 - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - Investing in bargain stocks that have recently shown price momentum may be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [2] Group 2 - Katapult Holdings, Inc. (KPLT) is highlighted as a strong candidate for momentum investing, having experienced a four-week price change of 17.5% [3] - KPLT has gained 107.5% over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.64, suggesting it moves 64% more than the market, reflecting its fast-paced momentum [4] Group 3 - KPLT has a Momentum Score of B, indicating a favorable time to invest in the stock to leverage its momentum [5] - The stock has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - KPLT is trading at a low Price-to-Sales ratio of 0.21, suggesting it is undervalued and offers significant upside potential [6] Group 4 - In addition to KPLT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify winning stock picks [8]

Core Viewpoint - Katapult Holdings, Inc. is set to release its fourth quarter and full year 2024 financial results on March 28, 2025, before market opening, followed by a conference call to discuss these results [1]. Company Overview - Katapult is a technology-driven lease-to-own platform that collaborates with omni-channel retailers and e-commerce platforms to facilitate the purchase of durable goods for underserved U.S. non-prime consumers [3]. - The company offers a simple, fast, and transparent process through point-of-sale integrations and its mobile app, Katapult Pay™, enabling consumers who lack access to traditional financing to shop from a growing network of merchant partners [3]. - Katapult emphasizes a business model based on fairness and dignity, aiming to humanize the purchasing experience for underserved consumers [3]. Investor Relations - A live audio webcast of the financial results conference call will be available on the Katapult Investor Relations website, with a replay accessible after the call [2]. - For further inquiries, Jennifer Kull serves as the VP of Investor Relations and can be contacted via email [5].

Company Performance - Katapult Holdings, Inc. (KPLT) has shown a year-to-date performance increase of approximately 55.4%, significantly outperforming the average return of 4.4% in the Business Services sector [4] - The Zacks Consensus Estimate for KPLT's full-year earnings has risen by 11% over the past 90 days, indicating improved analyst sentiment and earnings outlook [4] Industry Comparison - Katapult Holdings, Inc. is part of the Technology Services industry, which consists of 151 companies and currently ranks 68 in the Zacks Industry Rank, with an average gain of 4% year-to-date [6] - In contrast, PagSeguro Digital Ltd. operates within the Financial Transaction Services industry, which has 37 stocks and ranks 88, with a year-to-date increase of 5.3% [6] Zacks Rank - Katapult Holdings, Inc. holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] - PagSeguro Digital Ltd. also has a Zacks Rank of 2 (Buy), indicating strong potential for continued performance [5]

Core Viewpoint - Katapult Holdings, Inc. (KPLT) has experienced a downtrend, losing 17.1% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be regaining control [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near or above the opening price, reflecting buying interest [3][4]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for KPLT, which is a bullish indicator, as it typically leads to price appreciation [6]. - The consensus EPS estimate for KPLT has increased by 11% over the last 30 days, indicating strong agreement among analysts regarding the company's potential for better earnings [7]. - KPLT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperform the market [8].

Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional strategy of "buy low and sell high," focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks is challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 2: Investment Strategy - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] - The 'Fast-Paced Momentum at a Bargain' screen is effective in spotting fast-moving stocks that remain attractively priced [2] Group 3: Katapult Holdings, Inc. (KPLT) Analysis - Katapult Holdings, Inc. (KPLT) has shown a 7% price increase over the past four weeks, indicating growing investor interest [3] - KPLT has gained 23.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.72, suggesting it moves 72% more than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - KPLT has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - KPLT is trading at a Price-to-Sales ratio of 0.17, indicating it is relatively cheap at 17 cents for each dollar of sales [6] Group 5: Additional Investment Opportunities - KPLT is not the only stock that meets the criteria of the 'Fast-Paced Momentum at a Bargain' screen, with several other stocks also available for consideration [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Group 1 - Momentum investing contrasts with the traditional strategy of "buy low and sell high," focusing instead on "buying high and selling higher" [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] Group 2 - Katapult Holdings, Inc. (KPLT) is highlighted as a strong candidate for momentum investing, with a four-week price change of 37.7% [3] - KPLT has gained 30.7% over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.72, suggesting it moves 72% higher than the market in either direction, reflecting fast-paced momentum [4] Group 3 - KPLT has a Momentum Score of A, indicating a favorable time to invest based on momentum [5] - The stock has a Zacks Rank 2 (Buy), supported by upward revisions in earnings estimates, which attract more investor interest [6] - KPLT is trading at a Price-to-Sales ratio of 0.17, suggesting it is undervalued at 17 cents for each dollar of sales [6] Group 4 - KPLT shows potential for significant growth at a fast pace, and there are other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [8]

Core Insights - Katapult Holdings, Inc. reported gross originations of approximately $75.2 million for Q4 2024, marking an 11.3% year-over-year increase, surpassing the company's previous growth outlook of 6-8% [2] - This performance represents the ninth consecutive quarter of year-over-year growth in gross originations and is the second highest in the company's history [2] - The strong performance was attributed to a successful holiday season, with significant engagement from both new and existing customers [2] Financial Performance - Gross originations for Q4 2024 reached approximately $75.2 million, reflecting an 11.3% increase compared to the same quarter in the previous year [2] - Total lease application volume grew by approximately 50% year-over-year, with new customer lease applications increasing by about 51% and existing customer lease applications also growing by 50% [6] - The repeat customer rate accounted for approximately 61.5% of gross originations in Q4 2024 [6] Strategic Initiatives - The company has transformed its go-to-market strategy since launching its app and KPay in late 2022, aiming for continued growth in both direct-to-merchant and direct-to-consumer channels [2] - Katapult's KPay gross originations grew approximately 52% year-over-year, indicating strong engagement with the platform [6] - The company is optimistic about its future growth prospects and plans to discuss final financial results in early March [2] Company Overview - Katapult is a technology-driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms, focusing on underserved U.S. non-prime consumers [3] - The company aims to provide simple, fast, and transparent payment solutions, emphasizing fairness and dignity in its services [3]

PLANO, Texas, Jan. 16, 2025 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (NASDAQ:KPLT), an e-commerce-focused financial technology company, today announced gross originations for the fourth quarter ended December 31, 2024. Katapult's gross originations were approximately $75.2 million for the fourth quarter, an increase of 11.3% year-over-year and above the 6-8% growth range the company provided on November 6, 2024. This is expected to be the ninth consecutive quarter of year-over-year gross originations gro ...

Financial Data and Key Metrics - Gross originations grew 3.3% to $51.2 million in Q3 2024, marking the eighth consecutive quarter of growth [41] - Revenue increased by 10% to $60.3 million in Q3 2024, reflecting improved productivity and efficiencies [43] - Gross profit for Q3 2024 was $11.9 million, up nearly 4%, with a gross margin of 19.8% [44] - Adjusted EBITDA for Q3 2024 was $600,000, in line with expectations, while year-to-date adjusted EBITDA was $5.8 million, a $7.4 million improvement compared to the same period in 2023 [49] - Cash flow from operations improved by $3.6 million year-to-date in 2024 compared to 2023 [51] Business Line Performance - Katapult Pay (KPay) grew 86.1% to $16 million in gross originations in Q3 2024, representing 31% of total gross originations [24] - Automotive category grew more than 25% in Q3 2024, with an average order value higher than the home furnishings category [17] - The company added 40 new merchant pathways in Q3 2024, with 40% of launches involving existing merchant partners [19] - KPay applications nearly doubled in Q3 2024, and the company added seven merchants to KPay year-to-date, bringing the total to 30 [25] Market Performance - More than 58% of total Q3 gross originations (excluding Wayfair) grew 37% year-over-year, up from 20% growth in Q2 [9] - Applications for the non-Wayfair portion of the business grew by more than 50% year-over-year [9] - The home furnishings category, particularly Wayfair, underperformed, with Wayfair application flow down significantly [9] Strategic Direction and Industry Competition - The company is focusing on diversifying gross originations through direct and waterfall merchant integrations, as well as expanding KPay [13][17] - Katapult is leveraging its app to deepen customer relationships, with app downloads increasing by 83% year-over-year and unique app users growing by 52% [26] - The company is expanding referral networks and expects to launch new partnerships in Q1 2025, which could deliver gross originations comparable to a large enterprise merchant annually [28] Management Commentary on Operating Environment and Future Outlook - Management highlighted the challenging macroeconomic environment, particularly in the home furnishings category, but remains optimistic about growth opportunities [52] - The company expects Q4 2024 gross originations growth of 6% to 8%, with revenue growth of 5% to 7% and roughly breakeven adjusted EBITDA [55] - Full-year 2024 gross originations are expected to grow 2% to 4%, with revenue growth of at least 10% and positive adjusted EBITDA of $5.5 million [56] Other Important Information - The company settled litigation related to Daiwa Corporate Advisory for $3 million, with $1.5 million paid in Q4 2024 and the remainder to be paid over the next two years [47] - Katapult signed a non-binding letter of intent for a new revolving line of credit, working capital line of credit, and term loan to refinance its existing credit facility [50] Q&A Session Summary Question: What would it take to see a material change in home furnishings demand? - Orlando Zayas stated that a recovery in home purchases, driven by declining interest rates, could lead to a turnaround in the home furnishings category [58] Question: What is the average origination size today versus 12 months ago? - Nancy Walsh confirmed that the average origination size remains in the $600 to $700 range, with no material change [59] Question: What is driving demand in KPay? - Derek Medlin explained that KPay demand is diversified across multiple retailers, with no single merchant dominating the volume [61][62] Question: How long does it take for referral partnerships to mature? - Derek Medlin noted that while some partnerships can start quickly, the company takes a diligent approach to ensure quality and performance before fully scaling [65][66] Question: Any update on the Synchrony waterfall integration? - Orlando Zayas mentioned that Synchrony has only released pre-approval waterfall flow so far, with broader functionality expected in 2025 [68] Question: What are the terms and timing of the new credit facility? - Nancy Walsh indicated that the company is pursuing favorable market conditions but could not provide specific details or timing [69] Question: What is the impact of the Delaware Litigation Settlement on shares outstanding? - Nancy Walsh explained that 168,000 shares were released as part of the settlement, with additional shares or cash settlements possible over the next 12 months [71][72] Question: What percentage of Q4 originations come from the Thanksgiving to Cyber Monday period? - Nancy Walsh stated that a significant portion of Q4 originations typically comes from this period due to retailer promotions [76] Question: Any comments on the patent infringement lawsuit? - Orlando Zayas stated that the company is evaluating the lawsuit and intends to vigorously defend itself, with no current financial impact [77]